Honestly, one way to go about this process is compare what you have to the PAR Standard Agreement of Sale.

Those who are self-employed (wholesaling generally qualifies) can get the additional benefits of the Solo 401k including: Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)

@Jack B.Three scenarios: 1) If you reinvest- yes it is traced to that activity and deducted2) if you use it for personal use - non-deductible3) if you hold on to it on your LLC account/ books, but dont reinvest - it can be argued that you are holding on to that money for future repairs and stuff and you refinanced/mortgaged because the interest rate was super low compared to what coming in the future.

I have had a lot of people tell me to stay away from conversions as they have bad vacancy rates, do not rent as well as traditional duplexes and are a lot more work than traditional duplexes/triplexes ect.... 

Not sure how it compares to the other areas!

;^)If I remember right, you can deduct an amount of the expenses based on the size of office space compared to the whole house.

And even if I am able to borrow, the rate of HELOC is much higher than a traditional mortgage, I would want to refinance to a traditional loan.

Not that it is off the table, just now that I have seen the condition of more than just the section in the photo, and how small it really is compared to others I have seen, I might be able to do both, keep it and open up the layout.  

They are saying based on comparable sales (which there aren't many in this location) it is worth $425k - based on gross rent multiplier is it worth $528k.

Anyway, if any of you are playing in this space, reach out and let's compare some notes.